Hybrid organisations embedded in resource-poor contexts: linking organisational capabilities and individual capabilities – a slippery ground?

Abstract

Purpose This paper aims to contribute to research on hybrid organisations operating within the information and communication technology for development paradigm to foster socio-economic inclusion through the capacity building of marginalised individual youth to enable their entry and participation in the formal labour market. Design/methodology/approach Using a qualitative research design, the authors investigated impact sourcing service providers and their beneficiaries to unpack how hybrid organisations fulfil their social mission and to provide a nuanced understanding of their needed capabilities. Data triangulation through document analysis, participant observation and semi-structured interviews were conducted for the empirical findings’ robustness and in-depth analysis. Findings This paper illuminates how hybrids strived to build beneficiaries' capabilities through empirically grounded approaches of “standardised” and “individualised” skills development, which were strongly connected to the perceived capabilities among the beneficiaries. Organisations that practiced the “individualised” approach imparted technical knowledge and, depending on individual needs, relevant social skills. Critically, the empirical findings call into question the effectiveness of the scalability model, as the results showed that the creation of standardised, low-skilled and low-paid jobs contradicts the idealised self-help status that employment advocates. In addition, the findings underline the central role of constant experimentation, resilience and organisational learning in revamping capabilities of hybrid organisations. Remarkably, compared to organisations committed to the “standardised” technical competency path, the results underscored the difficulties that organisations taking an “individualised" approach face in developing organisational capabilities for their financial sustainability. Further, organisations engaged in standardised” skills development were found to readapt their business model to the economic value and kept the wording of dual mission as a narrative. Originality/value The paper makes a conceptual and empirical contribution bringing together two separately developed literature strands – the organisational capability approach and – the individual capability approach, to enhance a more profound understanding of how both capabilities are connected to each other in the dual-mission orientation of hybrids embedded in resource-poor environments, global value chains, Global South, hybrid organisations, organisational and individual capability building.